MARBIDCO Loan Programs

Southern Maryland Agriculture Equity Incentive Matching Fund & Revolving Loan Program for Agriculture Producers

Partnership Program to Incentivize Southern Maryland Producers

Photo: Blaine Wilhour 

There are two opportunities available through this partnership:

The Southern Maryland Agricultural Equity Incentive Matching Fund – Designed to incentivize loan requests from farmers in Southern Maryland and help them meet certain down-payment (equity) requirements.

The Southern Maryland Revolving Loan Fund for Agricultural Producers – Designed for Southern Maryland applicants to assist with targeted projects.

The Southern Maryland Agricultural Equity Incentive Matching Fund

This joint partnership is designed to incentivize loan requests from Southern Maryland farmers, and to help them meet certain down-payment (equity) requirements in order to help improve the credit quality of their applications. The availability of SMADC incentive funding should lead to more applications being submitted from the Southern Maryland region. Read More.

Available MARBIDCO Programs under the SMADC Partnership:

• Maryland Resource-Based Industry Financing Fund Loan (MRBIFF)
• Pandemic Recovery Equipment and Working Capital Loan Fund
• Vineyard / Hops / Orchard Planting Loan Fund Program
• Shellfish Aquaculture Financing Fund
• Remote Setting Shellfish Aquaculture Loan Fund
• Forestry Equipment and Working Capital Loan Fund
• Rural Business Energy Efficiency Improvement Loan Fund

Each MARBIDCO program has its own eligibility criteria and application/approval process. Southern Maryland applicants would simply follow the regular application process, and would otherwise meet the rigors of MARBIDCO’s underwriting criteria for each loan program.

SMADC can contribute up to a maximum of $15,000 towards a MRBIFF Program loan, and in all other loan programs the equity incentive match would be capped at $5,000 (per applicant), 5% borrower equity is generally required.

Southern Maryland Revolving Loan Fund for Agricultural Producers

Under this program, only the activities of agricultural businesses located in the five Southern Maryland counties are eligible for farm business financing (these include: Anne Arundel, Calvert, Charles, Prince George’s, and St. Mary’s Counties).

Loan amounts may range between $10,000 to $20,000, with no collateral security pledge required. Only the personal guarantees of all the borrowers will be needed.

Loan funds may be requested for the following types of projects:

• Purchase livestock and/or enhance existing herds and flocks.
• Incubate the production of small fruits and increase acreage by existing small fruit growers.
• Upgrade for the safe growing, harvesting, packing and holding of produce in line with Good Agricultural Practices (GAP) and the Food Safety Modernization Act (FSMA).
• Shellfish Aquaculture foundation development.
• Purchase equipment and industry support services for the on-farm production of value-added farm products.
• Costs related to the foundation development and expansion of the regional equine (horse) farm industry.

MARBIDCO administers the loan program on behalf of SMADC. Borrowers that pay on time will receive approximately 20-25% loan forgiveness at the end of the loan term.

A major aim of this program is to complement SMADC’s commitment to expand and promote a viable market-driven, sustainable and profitable agricultural community in the Southern Maryland region. In furtherance of this objective, SMDAC has incorporated into this program an incentive for borrowers in good standing by forgiving approximately 20-25% of the loan amount due at the end of the loan term (by foregoing the final one-quarter of amortizing loan payments).

To visit SMADC's website, click here. Also, read about a Southern Maryland Revolving Loan Program success story here.